Snapshot of Budget 2014Digital Manager
Keeping an eye on the live news feeds and listening online to today’s Budget whilst structuring one of our new social media accounts, I noted some of the key facts coming out of the announcement.
Business owners watching the Budget this afternoon will have been pleasantly surprised with the contents sprung from Mr. Osbourne’s red box as the annual 100% tax allowance for investment was doubled to £500,000.
There was also good news for exporters as the amount of Government credit available to support overseas sales doubled, to £3bn, whilst the interest paid on that credit has been reduced by a third.
Furthermore, the Chancellor confirmed that the Governments’ Help to Buy scheme would be extended to 2020 in an effort to increase residential development. Whilst housebuilders will be pleased with the current surge in their share prices, the Government will be hoping house prices don’t experience such a rise.
All in all, the UK seems to finally be moving in the right direction, although Government targets on the deficit have fallen a fair bit short (it was hoped that the figure would stand at £60bn but is currently £110bn). Later this year we are expected to be operating at the same economic level enjoyed in 2008. An OBR economic forecast for this year estimates growth at 2.7%, up from previous predictions of 1.8%.
There are of course plenty of reasons to feel optimistic in terms of investment and growth but the fact remains everyday people just want to know how much heavier, or lighter, their wallet will feel. Labour maintained I’m £1600 worse off under the Tory leadership. I guess we’ll find which party people believe in next years General Election.
Richard Ingoldby, Digital Executive